LendingClub slumps after Q1 outlook falls short of expectations

Happen

29/01/2025 11:14

** Shares of digital bank LendingClub  LC.N  fall 23.4% to
$12.90 premarket
    ** LC late Tuesday forecast Q1 loan originations between
$1.8 bln to $1.9 bln and pre-provision net revenue of $60 mln to
$70 mln
    ** JPM says Q1 forecast was a touch lighter than expected
hurt by normal seasonal softness and increased marketing spend,
which appears to have spooked traders      
    ** KBW says investors were clearly holding expectations for
a much stronger outlook, but believes the reaction to be
overblown as LC has historically been extremely conservative
with its forecast
    ** Brokerage believes there could be material upside to LC's
forecast if the Fed were to cut more aggressively given the
firm's current outlook assumes only a single 25 basis points
rate cut in the back half of 2025   
    ** LC stock soared 85.2% in 2024

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))